Quote Originally Posted by Det_ard View Post
The numbers don't add up.

$2 million in yearly revenue won't even pay the interest on a $60-$90 million renovation loan. Unless someone is funding this out of the goodness of their heart and doesn't expect to earn a return on their very sizable investment.

Realistically, you'll have expenses like salaries, taxes, utilities, maintenance, marketing, etc. to take out of the $2 million in revenue. Let's say this leaves $1 million in profit [[not likely). Say a bank or private lender loans $50 million out of the $60-$90 million required, meaning Elmes or someone invests the other $10-$40 million in equity.

What's the interest on a $50 million loan? At a lower than market rate of 5%, they'd owe $2.5 million per year just in interest. But their net is only $1 million, or probably less.

How's this going to work? Skipper's rule indeed.
Fundraisers add up. $2.5 million isn't hardly much. If you get 200,000 people to donate $25 each, you can get $5,000,000. I don't know how much they charge for their events, but being in NYC, I don't think it would have been to hard too reach those numbers or something similar.